went car shopping today
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Joined: May 2003
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Hi
Here'* how to make money in the used car market.
You go to the auction and buy a 1999 Olds LSS for say $5500.
It retails for about $11,800.
You come in with a 1989 Bonnie....and I "allow" you $3000 on a trade in.
Retail of approx $11,800.00
"SALE PRICE of $9,800.00
Less your Trade in $3,000.00
Bal owed is $6,800.00
Since we only paid $5500.00 for the car..and received $6,800 in cash..then we have made $1,300 plus what ever that little treasure of a trade in will bring at auction.
Sometimes, you get lucky and if the '89 was a real attractive car with low miles...like that ebay olds linked above...your in clover. But more times than not...a 14 year old car isnt going to be too great.
Trades in deals of this nature...are mostly useful as a downpayment for the purchaser.
The combinations in auto deals is countless. I know, because thats how i worked my way thru college in the 80'*.
The "book" values....dont really reflect how the numbers work. I learned from an old "horse trader"...and the average retail customer has no clue about what he is really "getting" for his trade.
Here'* how to make money in the used car market.
You go to the auction and buy a 1999 Olds LSS for say $5500.
It retails for about $11,800.
You come in with a 1989 Bonnie....and I "allow" you $3000 on a trade in.
Retail of approx $11,800.00
"SALE PRICE of $9,800.00
Less your Trade in $3,000.00
Bal owed is $6,800.00
Since we only paid $5500.00 for the car..and received $6,800 in cash..then we have made $1,300 plus what ever that little treasure of a trade in will bring at auction.
Sometimes, you get lucky and if the '89 was a real attractive car with low miles...like that ebay olds linked above...your in clover. But more times than not...a 14 year old car isnt going to be too great.
Trades in deals of this nature...are mostly useful as a downpayment for the purchaser.
The combinations in auto deals is countless. I know, because thats how i worked my way thru college in the 80'*.
The "book" values....dont really reflect how the numbers work. I learned from an old "horse trader"...and the average retail customer has no clue about what he is really "getting" for his trade.
Senior Member
Posts like a Turbo
Joined: May 2003
Posts: 359
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From: Oklahoma
They might give you $3k for a 93-95 depending on quality but definetely not a 1989, well no used dealer in his right mind. But ya I get your point... and I thought that was common knowledge to car folk.
Senior Member
Posts like a Turbo
Joined: May 2003
Posts: 215
Likes: 0
Hi
Why not? Its not real money...the dealership would own the '89 for nothing..and if it only brought $200 at auction..so what?
The "$3000" trade in counts as a downpayment, and another sale is made.
Thats how the business runs.
Why not? Its not real money...the dealership would own the '89 for nothing..and if it only brought $200 at auction..so what?
The "$3000" trade in counts as a downpayment, and another sale is made.
Thats how the business runs.
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